Its good to be real while you are still young; you will always meet new opportunities and possibilities. You could get to experience new adventures and freely do what you want with no doubt. Moreover, your back won’t hurt after walking miles from your home.
However, there is a downside to being young: Youthful Driver often pays more expensive car insurance than the drivers — who ages 25 and up. Furthermore, the insurance companies reasoned out this phenomenon and stated that younger drivers, generally incur more accidents because they don’t have a lot of experience while driving on the road. As a result, young drivers are less affordable to ensure. A recent study says that car insurance for young drivers under the age of 25 costs $1,680 per year. Want to know how to reduce your car insurance premium rate?
Contact us for more information.
Why Is Young Drivers Car Insurance So Expensive?
The main absolute reason why young drivers incur more expensive car insurance rates is that — they are at risk of a higher chance of accidents than the mature ones. Recently, statistics state that car accidents are the leading cause of teenager’s injuries and deaths. Furthermore, these ages 15 to 20 doubles their risk of fatal car accidents — if they are riding with other passengers who ages the same. Since the statistics show this risk of accidents — the insurance companies, therefore, conclude to reflect this risk on the young Driver’s premium rate.
Besides, they often have to pay more expensive car insurance because they haven’t had enough experience yet to build their no claims bonus. It makes young drivers find it challenging to find an affordable car insurance policy.
Common Causes Of Young Drivers Accidents — That Causes The Young Drivers Car Insurance Rate Rise
Young Drivers Is Using Mobile Phones While Driving
32% of teenage students have involved in car accidents due to texting and emailing while driving.
It is driving while talking can double the likelihood of a fatal crash because it can slow the reflexes of the Driver up to that of a 70-year-old individual.
Younger drivers from 16 up to 20 have the most significant numbers of an accident because they distracted from messages.
About ¼ of fatal car crashes of teenagers involve underage drinking and driving or driving under the influence of alcohol.
High school students reported driving other vehicles or their car while drinking alcohol.
60% of teen drivers who are involved in driving while drinking is not wearing a seatbelt.
22% of teenagers that involved in a fatal crash is not wearing restraints during the car collision.
How To Reduce The Car Insurance Premiums Of Younger Drivers
- Improve Your Driving Skills
A massive percentage of young drivers are involved in a car crash after they incur a car insurance policy. So, some insurance companies find it difficult to insure young drivers. As an insurance seeker, you need to prove yourself to the insurance company that you are worth having insurance policy. Try to take a driving course and improve your driving skills. Some insurance companies can reduce your premium rate up 10% when you provide proof of completion of the course.
Discounts For Security Features
If your car has an airbag and anti-theft alarms — including car alarms and anti-lock brakes — make sure to tell your insurance provider about that. Insurance companies are applying discounts if you have these safety features in your car.
Refrain From Driving When You Are Uninsured
There is a lot of logical reasons why new drivers need to have car insurance. Some drivers think that they can save money if they drive on the road without Insurance — but that perception is wrong. If the Driver incurs an accident while he is not insured — he will have to pay for all the cost of damages — so it means that the consequences are more significant than you realize. Furthermore, you can also be in trouble with the law because the law requires every Driver to procure minimum liability limits. Therefore, if the Driver has a car insurance policy — he is handing over his risk of losses to the insurer. Furthermore, he will not get into trouble with the bylaws.
Some Steps To Protect Young Drivers
- Complete a driving skills training class
- Look for students with good grades discounts.
- Refrain from texting or using mobile phones while driving
- Increase deductible rates
- Don’t Compromise On Getting A Cheaper Insurance Rate.
Most importantly, don’t try to get the cheapest car insurance rate. Affordable car insurance premium rate is sometimes can be deceiving — because it offers a minimal amount of coverage. Furthermore, you will only know that you are underinsured if you got yourself involved in a car crash. So we recommend you to work with insurance agents who are experts in insuring young drivers.
How To Shop For Car Insurance?
It would be a better idea if you thought of shopping around for quotes from multiple car insurance providers. New drivers may want to look for car insurance companies who offer accident forgiveness coverage. This rider or optional coverage could protect its driving record from being affected by the insurance providers’ rating system. Therefore, this could prevent the younger Driver’s premium rate from rising if they incur an accident — on where they are at fault.
When Does My Premium Rate Drop?
Once you hit the age of 25, your premium rate automatically drops. Many insurance providers find a driver that ages 25 and up, less risky than young drivers. However, if you file a bunch of claims during your teenage years, this would be less likely true.
Other Factors That Can Affect The Premium Rate Of The Driver
Many factors can lead the Driver to a higher premium rate. Therefore it’s not just the younger drivers who can procure a higher policy rate. The age of the Driver, its driving record, location, and insurance rate could play a significant role in determining the insurance rate of the Driver.
Car insurance providers combine the age of the Driver into their driving experience. Younger drivers generally procure a higher premium rate because they lack driving experience.
Young drivers between the age of 16 and 24 generally pay 150% more than mature drivers between the ages of 25 and 75.
Once a driver caught an accident where the insured party is at fault, it could automatically increase its premium rates. It could increase its premium rate if they incur a recent violation — including at-fault accidents, tickets due to speeding, and driving under the influence. After any violations done by the Driver, the insurance provider could surely increase the Driver’s premium rate; sometimes, they even find it uninsurable. So better not be a reckless driver and stick with the bylaws rules and proper driving etiquette.
The Driver’s location is one of the most fundamental factors in determining the premium rate of the proposed insured. Furthermore, if a driver is living in a neighborhood where the crime rate is high — they would typically get a higher premium rate.
California is one of the most states that have the most expensive car insurance rate — with an average premium of $900 on a six-month policy. This state tends to have a higher car insurance rate because of the density of its population and the ratio of its claim and profit.
Additionally, cities with a higher density of population would likely to procure more car crash and collision accidents claims — which impacts the insurance premiums.
FAQ Of Young & New Drivers
Q. Why is Insurance so expensive for teenage drivers?
The cost of car insurance varies from the drivers driving record, age, location, and other specifics that are listed above. The most expensive insurance rate is paid by male drivers under the age of 25. Drivers under the age of 25 are accounted for more than thousands of fatal crashes a year — thus, it affects the premium rates on that age group.
Q. Can I Be Added To My Parents Car Insurance Policy?
Yes, every teenager can be added to their parent’s auto insurance policy. However, the cost of its car insurance policy will increase. Furthermore, some insurance providers only insure young drivers if they are under their parent’s policy. However, the rates will be different from your parent’s rates.
Q. Do I Need To Reach A Certain Age To Buy My Car Insurance Policy?
No, you don’t need to reach a certain age before you can buy your policy. However, the Driver must have a valid driver’s license. Besides, almost all states require the Driver to reach the age of 18 first, beforehand they can own a car under their name.
Q. Should I Report All The Accidents To My Insurance Provider?
Yes, you have to report all the accidents you incur to your insurance provider even though you don’t file a claim. If you don’t report these incidents, you just run up the possibility to be sued by another driver who is involved in the accident. Therefore, your company will be at a disadvantage in defending you.
Here At Best Car Insurance California, we could help you find affordable car insurance. We can get you different quotes from A-rated insurance providers that could provide you car insurance with comprehensive car insurance coverage. Get a free quote now and start lowering your risk of financial loss today.